Income and Corporation Taxes Act 1988

607 Pilots’ benefit fund. U.K.

M1 (1) The Board may, if they think fit, and subject to such conditions as they think proper to attach to the approval, approve a pilots’ benefit fund for the purposes of this Chapter as if it were a retirement benefits scheme and notwithstanding that it does not satisfy one or more of the conditions set out in section 590(2) and (3).

(2) If a fund is approved by virtue of this section—

(a) sections 592, [F1 598 to 599A] and 604 to 606 shall have effect in relation to the fund with the modifications specified in subsection (3) below;

(b) pensions paid out of the fund and any sums chargeable to tax in connection with the fund [F2 in accordance with section 584 of ITEPA 2003 (unauthorised payments)] shall be treated for the purposes of the Income Tax Acts as earned income; and

(c) Chapter III of this Part shall have effect as if a member of the fund were the holder of a pensionable office or employment and his earnings as a pilot (estimated in accordance with [F3 such of the provisions of Part 2 of ITTOIA 2005 as apply in calculating the profits of a profession]) were remuneration from such an office or employment.

(3) The modifications referred to in subsection (2)(a) above are as follows—

[F4 (a) in section 592—

(i) subsections (4) to (6) shall be omitted; and

(ii) for subsection (7) there shall be substituted—

“(7) Any contribution paid under the scheme by a member of the fund shall, [F5 in calculating the profits of the profession], be allowed to be deducted as an expense.”;]

(b) in [F6 sections 598 to 599A and sections 604 to 606]—

(i) for references to an employee there shall be substituted references to a member or former member of the fund;

(ii) in section 599(1)(a) for the reference to a year of service there shall be substituted a reference to a year as a pilot licensed by a pilotage authority or authorised by a competent harbour authority;

(iii) [F7 section 606(2)(b), (4)(b), (7), (8) and (13)] and so much of any other provision as applies to an employer shall be omitted; F8 . . .

(iv) F8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In this section “pilots’ benefit fund” means a fund established under section 15(1)(i) of the M2 Pilotage Act 1983 or any scheme supplementing or replacing any such fund.

Textual Amendments

F1 Words in s. 607(2)(a) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 80(2) (with Sch. 7)

F2 Words in s. 607(2)(b) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 80(3) (with Sch. 7)

F3 Words in s. 607(2)(c) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 259(2) (with Sch. 2)

F4 S. 607(3)(a) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 80(4) (with Sch. 7)

F5 Words in s. 607(3)(a) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 259(3) (with Sch. 2)

F6 Words in s. 607(3)(b) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 80(5) (with Sch. 7)

F7 Words in s. 607(3)(b)(iii) substituted (with application in accordance with s. 104(3) of the amending Act) by Finance Act 1994 (c. 9), s. 104(2)

F8 S. 607(3)(b)(iv) and preceding word repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 80(6), Sch. 8 Pt. 1 (with Sch. 7)

Modifications etc. (not altering text)

C1 See Sch.1 para.4 Pilotage Act 1987—continuation of fund following repeal of s.15(1)(i) Pilotage Act 1983 by Pilotage Act 1987 (on and after 1February 1988by virtue of S.I. 1987 No. 2138).

Marginal Citations

M1 Source-1980 s.35

M2 1983 c. 21.